Let’s start off with this simple pullback opportunity showin’ up on EUR/CHF’s 4-hour forex chart. The pair recently surged past resistance around the 1.0500 to 1.0550 psychological levels then climbed close to the 1.0700 major psychological mark. From there, price began to retreat and might have its sights set on the broken resistance area. This is somewhere between the 50% and 61.8% Fibonacci retracement levels, which might be enough to keep further losses in check and allow the uptrend to resume. The 100 SMA just crossed above the 200 SMA anyway, confirming that EUR/CHF could be in for a longer-term rally, but stochastic has yet to turn from the oversold region before buyers come back to play.
Missed the double top breakdown on AUD/NZD? Don’t fret! You might still have a chance to catch the selloff on a quick pullback, as the pair seems ready to make a correction to the broken neckline support. This lines up with the 38.2% Fibonacci retracement level and is near the 1.1100 major psychological mark, which might hold as a ceiling. For now, stochastic is moving out of the oversold area, suggesting that Aussie bulls are on top of their game and that a larger correction to the higher Fibs might be possible. The 100 SMA, which lines up with the 50% Fib level, is below the 200 SMA, which coincides with the 61.8% Fib and the 1.1200 mark, so the longer-term downtrend might stay intact.
If you’d rather trade ranges, then you might wanna check out this descending triangle pattern on AUD/CAD’s 4-hour forex time frame. At the moment, the pair is testing the triangle support around the .9450 minor psychological level and might be due for a bounce. Not only is stochastic starting to climb out of the oversold area to indicate a pickup in buying pressure, but a small bullish divergence has formed after the pair made lower lows while the oscillator made higher lows. A bounce off the bottom of the triangle could spur a move all the way up to the resistance near the .9600 major psychological mark or at least until the moving averages around the middle of the formation. If you’re bearish on the Aussie, better keep your eyes peeled for a strong red candle closing below the triangle support before shorting!
Forex Chart Settings:
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.